Pulaski Highway Express, Inc. v. Terminal Transport Co.

493 S.W.2d 103, 1972 Tenn. App. LEXIS 306
CourtCourt of Appeals of Tennessee
DecidedDecember 1, 1972
StatusPublished
Cited by4 cases

This text of 493 S.W.2d 103 (Pulaski Highway Express, Inc. v. Terminal Transport Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pulaski Highway Express, Inc. v. Terminal Transport Co., 493 S.W.2d 103, 1972 Tenn. App. LEXIS 306 (Tenn. Ct. App. 1972).

Opinion

OPINION

TODD, Judge.

This is a dispute between connecting motor carriers as to which should bear the loss from injury to a shipment in transit. The Trial Judge directed a verdict for the defendant, Terminal Transport Company, Inc., (hereafter called Terminal) and the plaintiff, Pulaski Highway Express, Inc., (hereafter called Pulaski) has appealed.

The sole assignment of error complains of said directed verdict dismissing the suit of Pulaski.

The damaged shipment was a large welding machine which belonged to the Maremont Corporation and was shipped from the Maremont plant in Illinois to the Maremont plant in Tennessee. It is un-controverted that the shipment was received “in apparent good order” by Terminal who delivered it to Pulaski in Nashville and that Pulaski transported the shipment to destination where it was found to be damaged to the extent of $4,600.00.

It is also uncontroverted that Pulaski paid to Maremont the said sum of $4,600.-00 and that Maremont assigned to Pulaski its claim for damage to said shipment.

The one disputed issue of fact is the condition of the shipment at the time Terminal delivered it to Pulaski.

This suit is based upon the United States Interstate Commerce Act, (Title 49, U.S. C.) pertinent portions of which are as follows :

“§ 20, par. (11). Liability of initial and delivering carrier for loss; limitation of liability; notice and filing of claim. Any common carrier, receiving property for transportation shall issue a receipt or bill of lading therefor, and shall be liable to the lawful holder thereof for any loss, damage, or injury to such property caused by it or by any common carrier, over whose line or lines such property may pass . . . when transported on a through bill of lading, . . . any such common carrier, ... so receiving property for transportation or any common carrier, delivering said property so re[106]*106ceived and transported shall be liable to the lawful holder of said receipt or bill of lading or to any party entitled to recover thereon, whether such receipt or bill of lading has been issued of not, for the full actual loss, damage, or injury to such property caused by it or by any such common carrier, ... to which such property may be delivered or over whose line or lines such property may pass . . . (emphasis supplied)
"§ 20, par. (12). Recovery by initial or delivering carrier from connecting carrier. The common carrier, railroad, or transportation company issuing, such receipt or bill of lading, or delivering such property so received and transported, shall be entitled to recover .from the common carrier, railroad, or transportation company on whose line the loss, damage, or injury shall have been sustained, the amount of such loss, damage, or injury as it may be required to pay to the owners of such property, as may be evidenced by any receipt, judgment, or transcript thereof, and the amount of any expense reasonably incurred by it in defending any action at law brought by the owners of such property.”

The declaration of Pulaski is in two counts. In the first count, Pulaski alleges that, as delivering carrier, it paid .$4,600.00 damages to the owner of the shipment and is entitled to reimbursement from Terminal because the damage occurred while the shipment was in the possession of Terminal, as provided by 49 U.S.C. § 20(12) supra.

In the second count of the declaration, Pulaski seeks to enforce the rights of Mare-mont to recover from the initial carrier, Terminal, regardless of the carrier on whose lines the damage occurred as provided by 49 U.S.C. § 20(11) supra.

The contentions of Pulaski will be considered as they relate to the two counts of the declaration, but in reverse orde'r.

Under the second count, Pulaski insists that it.stands in the shoes of Maremont and thereby has the same right as Mare-mont to demand and receive settlement for damages in transitu from the initial carrier, Terminal, regardless of whether or not the shipment was damaged while in the possession of Terminal.

It is, of course, conceded that, if Mare-mont had chosen to do so, it might have proceeded against Terminal as the initial carrier and collected its damage from Terminal upon a simple showing that damage occurred between shipment and delivery. Defendant insists, however, that Pulaski, as assignee, is not entitled to the same liberality of remedy.

Pulaski insists and cites authority for the proposition that the right of action of Maremont was assignable, hence the assignment to Pulaski conveyed all of the rights of Maremont, including the right to collect damages from Terminal by a mere showing of damage in transitu without showing that the damage occurred while the shipment was in the possession of Terminal.

Pulaski cites Carne v. Maryland Casualty Co., 208 Tenn. 403, 346 S.W.2d 259 (1961) wherein the Supreme Court held that an action against a liability insurer for bad faith in failing to settle within policy limits was an action ex delicto and did not survive the death of the insured.

In Haymes v. Halliday, 151 Tenn. 115, 268 S.W. 130 (1924), cited by appellant, the Supreme Court held that rights of action for damages to real estate were not assignable at common law, but are made such by the survival statutes.

In Railroad v. Henderson, 69 Tenn. (1 Lea) 1 (1878), cited by Pulaski, the Supreme Court held that a right of action for tort to personal property may be assigned.

None of the cited authorities directly supports the proposition that the peculiar and special remedy of the owner of a ship[107]*107ment, conferred by federal statute, is assignable.

It is beyond serious question that a shipper may assign his rights in a shipment (as by transfer of bill of lading); but there is serious question as to the power of the holder of a bill of lading to assign part of his rights thereunder (i. e., his claim for damages), thereby to vest the assignee with the rights conferred by statute only upon “the lawful holder of said receipt or bill of lading or any party entitled to recover thereon.”

It is to be emphasized at this point that Maremont did not assign the bill of lading to Pulaski. By said assignment Maremont assigned to Pulaski:

“. . . all of its right, title and interest in and to any claim for damages which it has or might have against any other carrier as the result of said shipment . . . .”

Furthermore, the declaration of Pulaski does not represent that it is the lawful holder of the bill of lading or that it is a party entitled to recover thereon (upon the bill of lading).

In the annotation in U.S.C.A.

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Bluebook (online)
493 S.W.2d 103, 1972 Tenn. App. LEXIS 306, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pulaski-highway-express-inc-v-terminal-transport-co-tennctapp-1972.